Figure 16.3.1 -Assume There Are Only Two Individuals in an Economy, Lisa

question 90

Multiple Choice

Figure 16.3.1
-Assume there are only two individuals in an economy, Lisa and Bart. The utility possibilities frontier for these individuals is given as: 120 = U_L + U_B
Where U_L is Lisa's utility and U_B is Bart's utility. Lisa's current level of utility is 20, Bart's level of utility is 90. This combination is:

• A) inefficient.
• B) economically efficient.
• C) impossible, because it is outside of the welfare frontier.
• D) none of the above

---

Definitions:

Employee's Reaction

The response or feedback of an employee to a particular situation or action taken by the employer, which can influence organizational atmosphere and performance.

Layoff

The temporary or permanent termination of employment of an employee or a group of employees for reasons such as cost-cutting or downsizing.

Human Resource Management

The strategic approach to the effective management of people in a company or organization so that they help the business gain a competitive advantage.

Mergers And Acquisitions

The process of consolidating companies or assets, where 'mergers' is the combination of companies and 'acquisitions' is one company taking over another.